Efficient venture capital financing combining debt and equity
AbstractI present a model of venture capital contracting in which contracts that involve a mixture of both debt and equity are efficient and dominate pure-equity and pure-debt financing. The optimal contract balances the venture capitalist's incentive to intervene in the project and the entrepreneur's desire for control.
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Bibliographic InfoArticle provided by Springer in its journal Review of Economic Design.
Volume (Year): 3 (1998)
Issue (Month): 4 ()
Note: Received: 9 September 1997 / Accepted: 3 April 1998
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Web page: http://link.springer.de/link/service/journals/10058/index.htm
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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